UniCredit shares fell nearly 15% today on the size of the larger-than-expected discount, which is designed to help the bank meet a new minimum core capital requirement imposed by the European Banking Authority. UniCredit shares tumbled 14.5pc to €5.42 as investors digested the surprise 43pc discount at which the new shares are being offered as part of a capital-raising programme. However, analysts said that the perceived weakness of eurozone banks could prove a major hindrance on any plans to raise more money from shareholders. Analysts at UBS warned that shareholders were "fundamentally unsure of their position", saying that increased dependence of many Continental European banks on taxpayer funding had "historically proven disastrous for equity investors". "Banks may be allowed to trade through the (extended) period without diluting equity holders, but the logic of the situation leaves taxpayers shouldering the costs," said UBS.
Access Investments-Building Awareness - European Union-ROMANIA
Thursday, January 5, 2012
UniCredit shares fell nearly 15% today on the size of the larger-than-expected discount, which is designed to help the bank meet a new minimum core capital requirement imposed by the European Banking Authority. UniCredit shares tumbled 14.5pc to €5.42 as investors digested the surprise 43pc discount at which the new shares are being offered as part of a capital-raising programme. However, analysts said that the perceived weakness of eurozone banks could prove a major hindrance on any plans to raise more money from shareholders. Analysts at UBS warned that shareholders were "fundamentally unsure of their position", saying that increased dependence of many Continental European banks on taxpayer funding had "historically proven disastrous for equity investors". "Banks may be allowed to trade through the (extended) period without diluting equity holders, but the logic of the situation leaves taxpayers shouldering the costs," said UBS.
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21.30 US markets have closed. Amid thin volumes, the Dow Jones industrial average closed up 0.17pc at 12,418.42, while the broader S&P 500 ended the day flat at 1,277.42.
The tech-focused Nasdaq also finished flat.
20.45 Looking ahead, tomorrow kicks off with German retail sales figures at 7am, followed by Italian unemployment figures at 9am, and UK services data at 9.30am.
The service sector powers around 75pc of the British economy. Growth is expected to slow in December.
Then, at 10am, a bond bonanza from France, which will see it issue a range of long-term debt ranging from ten to 40 years.
From the US, initial jobless claims are out at 1.30pm, followed by ISM non-manufacturing data - aka US services.
19.57 This means that GSEs such as Fannie and Freddie must ride the fine line of:
...pursuing a policy of reducing their near-term losses and risk exposure versus adopting policies to support the broader housing market. Aggressively putting back delinquent loans to lenders helps the GSEs maximize their profits on old business and thus limits their draws on the U.S. Treasury, but at the same time, it discourages lenders from originating new mortgages.
19.55 The report goes on to explore the "unresolved role of the government-sponsored enterprises (GSEs)" such as Fannie Mae and Freddie Mac, and the potential conflicts of interest that might arise on the road to recovery:
In many of the policy areas discussed in this paper--such as loan modifications, mortgage refinancing, and the disposition of foreclosed properties--there is bound to be some tension between minimizing the GSEs’ near-term losses and risk exposure and taking actions that might promote a faster recovery in the housing market. Nonetheless, some actions that cause greater losses to be sustained by the GSEs in the near term might be in the interest of taxpayers to pursue if those actions result in a quicker and more vigorous economic recovery.
19.30 A white paper on the US housing market released by the Federal Reserve today highlights the hurdles the sector faces as it limps towards recovery:
The ongoing problems in the U.S. housing market continue to impede the economic recovery. House prices have fallen an average of about 33 percent from their 2006 peak, resulting in about $7 trillion in household wealth losses and an associated ratcheting down of aggregate consumption [...] But the problems also reflect three key forces originating from within the housing market itself: a persistent excess supply of vacant homes on the market, many of which stem from foreclosures; a marked and potentially long-term downshift in the supply of mortgage credit; and the costs that an often unwieldy and inefficient foreclosure process imposes on homeowners, lenders, and communities.
Latest
21.30 US markets have closed. Amid thin volumes, the Dow Jones industrial average closed up 0.17pc at 12,418.42, while the broader S&P 500 ended the day flat at 1,277.42.
The tech-focused Nasdaq also finished flat.
20.45 Looking ahead, tomorrow kicks off with German retail sales figures at 7am, followed by Italian unemployment figures at 9am, and UK services data at 9.30am.
The service sector powers around 75pc of the British economy. Growth is expected to slow in December.
Then, at 10am, a bond bonanza from France, which will see it issue a range of long-term debt ranging from ten to 40 years.
From the US, initial jobless claims are out at 1.30pm, followed by ISM non-manufacturing data - aka US services.
19.57 This means that GSEs such as Fannie and Freddie must ride the fine line of:
...pursuing a policy of reducing their near-term losses and risk exposure versus adopting policies to support the broader housing market. Aggressively putting back delinquent loans to lenders helps the GSEs maximize their profits on old business and thus limits their draws on the U.S. Treasury, but at the same time, it discourages lenders from originating new mortgages.
19.55 The report goes on to explore the "unresolved role of the government-sponsored enterprises (GSEs)" such as Fannie Mae and Freddie Mac, and the potential conflicts of interest that might arise on the road to recovery:
In many of the policy areas discussed in this paper--such as loan modifications, mortgage refinancing, and the disposition of foreclosed properties--there is bound to be some tension between minimizing the GSEs’ near-term losses and risk exposure and taking actions that might promote a faster recovery in the housing market. Nonetheless, some actions that cause greater losses to be sustained by the GSEs in the near term might be in the interest of taxpayers to pursue if those actions result in a quicker and more vigorous economic recovery.
19.30 A white paper on the US housing market released by the Federal Reserve today highlights the hurdles the sector faces as it limps towards recovery:
The ongoing problems in the U.S. housing market continue to impede the economic recovery. House prices have fallen an average of about 33 percent from their 2006 peak, resulting in about $7 trillion in household wealth losses and an associated ratcheting down of aggregate consumption [...] But the problems also reflect three key forces originating from within the housing market itself: a persistent excess supply of vacant homes on the market, many of which stem from foreclosures; a marked and potentially long-term downshift in the supply of mortgage credit; and the costs that an often unwieldy and inefficient foreclosure process imposes on homeowners, lenders, and communities.
Unelected officials have taken over Washington and are orchestrating the daily news. 99% of the comments and replies you're reading online come from an NSA software program spamming the internet. Comments are created before the stories are ever reported. The oldest, first, highest rated, best, and most popular comments are all propaganda. They are conducting Psy-ops (psychological operations) for domestic spying. They have 1000's of handles and are determined to bury the truth. Additionally, these people don't care much for some candidates like Ron Paul. The link in my name exposes the BIGGEST cover up in history.
Bring on the attack with all your handles trolls. Can't have the truth leaking out. Time to discredit this comment or bury it with large blocks of space and Euro/Dollar quotes for all the active currency traders that use this site for real time trend analysis.
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